3 UK shares I’d buy to prepare for the next stock market crash

Based on past performance, these three UK shares could provide a safe haven for investors in a second stock market crash, says this Fool.

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In this year’s stock market crash, many UK shares plunged in value. However, some stocks outperformed the market due to their defensive nature and growth characteristics. 

Today I’m going to take a look at three of these companies. I think they could be the perfect stocks to own for investors looking to protect their portfolios from another market decline. 

UK shares to own

Small-cap Wynnstay (LSE: WYN) might fly under the radar of many investors, but the company has performed well this year. The business provides farmers with agricultural products and helps organisations manage logistical problems. 

Demand for both of these services remained high throughout the coronavirus lockdown. This helped the company weather the stock market crash. I think it is highly likely that the demand for Wynnstay’s services will continue to grow in the long term. 

At the UK’s population grows, demand for food will continue to increase, and the country is under increasing pressure to produce more food at home. As one of the only publicly listed farm supply companies, Wynnstay could be one of the best UK shares to play this trend. 

Stock market crash bargain

Shares in power group Drax (LSE: DRX) slumped in the stock market crash.

However, the company provides a critical service for the UK. It’s one of the largest power plant operators in the country. Even at the height of the coronavirus lockdown, consumers were still using electricity. Thanks to this steady demand, the firm’s earnings are expected to decline by just 3% in 2020. 

Still, despite this bright outlook, the stock looks cheap compared to other UK shares. It is currently changing hands at a price-to-earnings (P/E) ratio of 9.5. On top of this, it supports a dividend yield of 6%. 

As such, due to the group’s income potential and defensive nature, I think it could be worth buying the stock as part of a diversified portfolio today while its trades at a low level.


Ferrexpo (LSE: FXPO) is one of the world’s largest iron ore producers. Shares in the company performed relatively well in this year’s stock market crash thanks in part to the group’s international diversification. 

In my opinion, this diversification should help the business stage a strong recovery in the years ahead. Countries around the world are planning to spend hundreds of billions of dollars over the next few years to stimulate their economy after the coronavirus pandemic. This could send the demand for iron ore skyrocketing, as infrastructure spending takes centre stage. 

Ferrexpo could be one of the best UK shares to play this trend. As of yet, the market does not seem to have cottoned on to the company’s potential.

It is changing hands at a forward P/E multiple of just five. Investors may also be entitled to a 6% dividend yield, according to current analyst projections. 

All in all, as a stock market crash bargain, I think it is worth taking a closer look at Ferrexpo. 

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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